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Speaker 1: All right, airplane manufacturer is really trying to strike that

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Speaker 1: balance right now between satisfying customer demand and dealing with

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Speaker 1: some of the issues with their suppliers. Airbus just out

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Speaker 1: with their third quarter results, and investors seem to like

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Speaker 1: what they've heard. They also seem to like the fact

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Speaker 1: that the company is standing by those longer term forecasts.

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Speaker 1: The company also ramping up production of its wide our

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Speaker 1: body jet scene that it expects a robust recovery in

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Speaker 1: long distance travel. Please to say right now that the

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Speaker 1: CEO of Airbus is joining us right now along with

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Speaker 1: our very young guy Johnson. Guy take it away.

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Speaker 2: Remain, thank you very much. Indeed, Guillem, good evening, Thank

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Speaker 2: you for your time. Remain just laid it out perfectly.

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Speaker 2: Q three pretty solid, maybe a little light on the

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Speaker 2: ebit line, but nevertheless, the market seems to like what

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Speaker 2: it hears. What you are also saying today is that

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Speaker 2: you are sticking to your full year guidance. Gillem, Just

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Speaker 2: how big a Q four are you anticipating. It looks

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Speaker 2: like you're setting us up for a massive number.

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Speaker 3: Actually, we are already beginning of November, so we have

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Speaker 3: part of the fourth quarter behind us. With the month

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Speaker 3: of October, and we've delivered seventy one commercialier plane in

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Speaker 3: the month of October, So what we have to deliver

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Speaker 3: for November and December this year is similar to what

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Speaker 3: we did a year ago in November and December. So

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Speaker 3: it's indeed a big quarter, but we see that we

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Speaker 3: have part of that quarter behind us. We performance in October,

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Speaker 3: we think we are well placed for November and we start.

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Speaker 4: To have some visibility for December.

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Speaker 3: That's why we felt like we're in a good place

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Speaker 3: to confirm the guidance of around seven hundred.

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Speaker 4: And twenty planes in twenty twenty three.

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Speaker 2: Around seven hundred and twenty plans gill On. Everybody is

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Speaker 2: now turning their attention to next year. They're trying to

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Speaker 2: figure out what kind of a delivery schedule we could

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Speaker 2: be looking at. You are ramping up a number of

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Speaker 2: the day lines you have. Clearly the three twenty line

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Speaker 2: is going to take a big push next year. However,

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Speaker 2: as Romaine just mentioned, you are still facing supply chain issues.

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Speaker 2: How much bigger can next year's number really be given

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Speaker 2: the constraints that you currently face.

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Speaker 3: I will not be specific on that question, as we

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Speaker 3: don't give a guidance for the year twenty twenty four

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Speaker 3: if we give a guidance before our full year result

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Speaker 3: meaning feb next year. But obviously, as we are in

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Speaker 3: a ramp up on the two twenty, on the three

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Speaker 3: twenty big time, but also now on the three thirty

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Speaker 3: and on the three fifty, you might have seen that

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Speaker 3: we have indicated we will be ramping up up to

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Speaker 3: eight ten on the eight three fifty by twenty twenty six.

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Speaker 3: So we ramp up on all programs and therefore there

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Speaker 3: will be a significant uplift of the production in twenty

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Speaker 3: twenty four compared to twenty twenty three.

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Speaker 4: And we are not yet at the point to be specific.

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Speaker 3: We are preparing those programs, the twenty twenty four programs

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Speaker 3: production programs with our suppliers.

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Speaker 4: It is paced by the supply chain, and.

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Speaker 3: We will have a better visibility by the turn of

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Speaker 3: the year beginning of next yure at the point where

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Speaker 3: we provide a guidance.

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Speaker 4: But there will be a steady growth on all programs.

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Speaker 1: But have you gotten any pushback from customers, Gillon, who

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Speaker 1: are maybe looking at some of the potential delays with

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Speaker 1: regards to the supply chain issues. Have they asked for

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Speaker 1: anything in return. If those delays do actually materialize.

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Speaker 4: Our customers expect the planes.

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Speaker 3: There is a very strong demands and that's an incredible

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Speaker 3: situation to being By the way, the gap between demand

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Speaker 3: and supply is large.

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Speaker 4: Airlines are a.

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Speaker 3: Strong appetite for the OEMs and in particular Airbus to

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Speaker 3: supply products, and what matters for them is ready to

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Speaker 3: get the planes and be able to enter them into service,

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Speaker 3: to have visibility. We know that when they received an aircraft,

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Speaker 3: they want to put it in service as fast as possible,

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Speaker 3: so they need to have the pilots trained, they need

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Speaker 3: to have all the infrastructure ready, and also at a

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Speaker 3: point in time they start to.

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Speaker 4: Sell the tickets.

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Speaker 3: So what they are really expecting in the difficult supply

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Speaker 3: environment we're in, and they know that it's a very

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Speaker 3: challenging environment, is first and foremost visibility and reliability.

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Speaker 4: In what we tell them about the end h into

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Speaker 4: service of the plane.

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Speaker 1: When you look at travel trends longer term, and there's

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Speaker 1: been a lot of discussion about the wide body rollout

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Speaker 1: and some of the demands the orders that we're getting

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Speaker 1: afford those both for air Bus as well as from

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Speaker 1: your competitor bowing here is this a bed that long

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Speaker 1: haul travel route will dominate much more than some of

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Speaker 1: those closer end destinations.

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Speaker 4: I think the.

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Speaker 3: Single aisle business, so the short and mid range activity

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Speaker 3: will continue to dominate the number of planes.

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Speaker 4: We've seen the activity on.

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Speaker 3: The single isle recovering much faster after COVID than it

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Speaker 3: was for white bodies for a long range, but we

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Speaker 3: think long range will follow up, will also recover first

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Speaker 3: and probably even stronger moving forward. And when we look

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Speaker 3: at the long term perspectives for the market, we expect

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Speaker 3: both single lile and white bodies to significantly grow, to

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Speaker 3: the extent that we believe there will be around forty

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Speaker 3: thousand planes to be delivered in the next twenty years.

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Speaker 2: You're ramping up, as you just confirmed to me the

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Speaker 2: three fifty, you're going to go to ten a month

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Speaker 2: twenty twenty six. That's not a big push higher. You're

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Speaker 2: basically going from eight to nine to ten by twenty

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Speaker 2: twenty six. Picking up on Romain's point is that you

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Speaker 2: talk you signaling caution that you actually think the big

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Speaker 2: push we're saying for long hauld demand at the moment

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Speaker 2: is not sustainable. Could you take that program higher by

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Speaker 2: that point if demand remains as robust as it is now.

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Speaker 3: Well, actually, we see the demand growing, We see a

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Speaker 3: recovery in the demand. And we were at a low

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Speaker 3: point of rate four on the fifty during COVID, So

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Speaker 3: we went from four and we keep growing and we

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Speaker 3: are now targeting ten. It's slightly or it's very comparable

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Speaker 3: to what we had RECOVID, and we had said that

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Speaker 3: the traffic itself would be recovering back to pre COVID

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Speaker 3: levels between twenty three to two twenty five, twenty twenty

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Speaker 3: three to twenty twenty five. So I think we are

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Speaker 3: consistent with the evaluation the assessment we made of the

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Speaker 3: recovery of the market going just out of COVID.

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Speaker 4: Do we have the potential for more?

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Speaker 3: Yes, the eight three fifty has the potential to go

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Speaker 3: up to rate thirteen based on the existing production system,

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Speaker 3: and we will continue to monitor the demand. The recovery

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Speaker 3: of the demand with a big replacement cycle for white

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Speaker 3: bodies that is just starting, and also some expectations for growth.

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Speaker 3: So the market has the potential to go higher, and

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Speaker 3: we have the potential to continue to serve that market.

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Speaker 4: By further rumping up but I'd like to just.

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Speaker 3: Confirm that rate ten on the three fifty is already

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Speaker 3: a very big number.

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Speaker 2: Okay, fair point, defense spending is rising in Europe. How

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Speaker 2: long will it take? And in what scale should we

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Speaker 2: be thinking about the benefits occurring to us as a

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Speaker 2: result of this? When are you going to see the benefit?

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Speaker 2: Are you going to see the benefits of that pickup

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Speaker 2: in defense spending? And how big an impact do you

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Speaker 2: think it's going to have on your bottom line?

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Speaker 3: So I think we start to see some effects of

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Speaker 3: the increased spending.

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Speaker 4: You have probably observed.

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Speaker 3: That the order intake for defense space is robust this

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Speaker 3: year is good in Q three is higher than last year,

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Speaker 3: and helicopters is doing well too on the orders for

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Speaker 3: military helicopters.

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Speaker 4: Now, how much.

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Speaker 3: Time is it going to take to fully see the

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Speaker 3: impact of the increased defense budgets of the europe and

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Speaker 3: countries into our order book and P and L. I

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Speaker 3: would love to be able to answer that question. Defense

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Speaker 3: programs always take time. We are at Albus on large programs,

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Speaker 3: generally speaking, relying on multinational or international cooperation between countries.

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Speaker 3: I think it will take time, but we will see.

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Speaker 3: We see the order intake growing. We think we're going

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Speaker 3: to end up twenty twenty three with a book to

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Speaker 3: build higher than one for defense and space, and very

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Speaker 3: significant as well in helicopters for the military share of

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Speaker 3: the business. So it's quite slow to try to fairly

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Speaker 3: answer your question, but I think it's robust.

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Speaker 4: And we will see it growing here after here.

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Speaker 1: All right, Gail, we're gonna have to leave it there.

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Speaker 1: I really appreciate you taking time for us ask on ferry.

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Speaker 1: There is the CEO over at Airbus